A casualty, for federal income tax purposes, is a sudden, unexpected, or unusual loss or damage to some property you own. |
First of all, for income tax purposes, only losses to your property are deductible as a casualty loss. You can't deduct the loss of future earnings if your business is damaged in a fire, nor can you ... |
In order to claim a deduction for your casualty loss, you must be prepared to prove it. Specifically, if your tax return is audited, you should be prepared to show all of the following: |
If your property loss was covered by insurance, you must submit a timely claim for reimbursement with the insurance company in order to deduct any casualty losses for property damage. The exception ... |
For losses of trade or business property, or property used to produce rentals or royalties, once you've calculated the amount of your loss and subtracted the amount of your reimbursement, the ... |
If you receive insurance reimbursement that is more than your adjusted basis in the destroyed or damaged property, you may actually have a gain as a result of the casualty or theft. However, the fact ... |
If you have a loss to personal-use property, you must fill out Section A of Form 4684, Casualties and Thefts. Each item is reported in a separate column on this form (if a large number of ... |
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